Clean coal : A term used for coal that does not release it’s carbon dioxide into our atmosphere.

Coal was made from the deposited layers of forests and organic matter that have held the carbon under the earth over millions of years. Burning it releases all that carbon dioxide which is a major greenhouse gas. So burning coal and other fossil fuels contributes to global warming.

Coal is still fairly plentiful and is also still reasonably easy to dig up and burn. Today, scientists are working to discover ways to capture the carbon dioxide as the coal is burned and then to safely store it.

Advantages: If it works:

• we can continue to use coal to produce electricity for hundreds of years.
• we won’t have to spend so much money on new renewable technologies like solar, wind and water power.
• the coal miners can keep their jobs.

As South Africa’s second largest earner with regard to the value of total sales after gold, coal provides 6.1% of the country’s total merchandise exports. World wide, South Africa is the sixth largest holder of coal with 31 billion tonnes of recoverable coal reserves. This is equivalent to 11 % of the world’s total coal reserves.

While most of the coal is consumed by the South Africa’s energy sector, (approximately 77 %)circa 69 million tonnes of coal per annum are exported via Richard’s Bay Coal Terminal. In the past, the majority of our coal exports went to Europe, but recently, India and China have become the preferred market.

Coal production in South Africa is concentrated in large mines, with 8 mines accounting for 61 % of the output. About 46.5 % of the country’s coal mining is underground and 53.5 % is produced from open-cast mining methods. Bituminous or steam coal is South Africa’s main export coal, with anthracite having to be imported, due to dwindling reserves.

[source: http://www.universalcoal.com]

South Africa is a significant participant in the global coal markets. However, it is not the biggest. China, the USA and India are much larger producers and consumers of coal. Australia, Indonesia, Russia and Colombia are larger exporters.  Yet, South Africa’s coal industry is noteworthy in a number of respects;  it is a relatively low cost producer (along with Indonesia and Colombia), has the world’s largest coal export terminal, and is positioned conveniently between Atlantic and Pacific coal markets. It is a potential swing producer, able to export competitively to either Europe or the East.

With substantial coal reserves there is scope for expanding its coal exports, thereby generating much needed export earnings and reducing the country’s negative trade balance and current account deficit.

South Africa is also a major consumer of coal, mainly for electricity production and also operates the world’s only commercial coal synfuel plants (Sasol).